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Paper short abstract:

Evidences of cost evaluations manual are limited in cash transfer programmes (CTPs). Most CTPs implement multiple projects with the same manpower. This may overestimate reported costs if appropriate skills are missing. This paper provides a roadmap for undertaking cost evaluation in CTPs

Paper long abstract:

The major goal of cash transfer programmes (CTPs) is poverty reduction and social protection assurance. The foremost public outcry towards these programmes is significant portion of their budgets never reaches the intended beneficiaries but is absorbed in delivery costs. Yet, there is little empirical evidence that guide researchers on conducting cost analysis studies in CTPs. Cost data provides evidence based advocacy to program implementers and donor agencies regarding program scale-up decisions, setting priorities, program planning and choosing efficiency delivery mechanisms. Studies, though limited, are more focused on humanitarian than developmental projects with scant evidence existing on the general framework guide for estimating costs. There is an on-going controversial debate on which costs should be included in costing calculations. Similarly, there is an argument that cost studies suffer from insufficient data and incorrect estimations, due to lack of appropriate skills for capturing cost information and majority of cost evaluators are perceived to be auditors. This paper serves as a framework for undertaking cost analysis in CTPs by contributing on the associated methodologies and approach. The paper also argues that the best approach of conducting cost analysis is through cash transfer pathways which involve tracking all activities from when the money gets into suppliers to when it gets in recipients pockets. However, the type of cost analysis to use differs based on program design and objectives. This paper which was based on systematic review, will be useful to the programme implementers and researchers interested in evaluating cost effectiveness or cost efficiency of the CTPs